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Banks that loan to PE firms get paid back. Those that loan to PE-controlled firms may not.
by devilbunny 2y ago
Banks that loan to PE firms get paid back. Those that loan to PE-controlled firms may not.
- gruez 2y ago>Those that loan to PE-controlled firms may not. Who are these firms? Why would they be extending massive amounts of unsecured credit to those PE bought-out firms?
- sanswork 2y agoAnd why would banks keep giving loans to PE-controlled firms if the likelihood is high of no repayment? They're going to know the firm is PE controlled going into the deal.
- devilbunny 2y agoAsk a bank.
- sanswork 2y agoThe answer is that your beliefs on how PE works/what they do is wrong.
- devilbunny 2y agoBut you won’t bother me with the correct answer.